We have continued our study of bacteriophage lambda hin function and have shown that it is responsible for several alterations in E. coli physiology (Transformation). We believe these alterations result from an effect on the E. coli membrane. We also study control of transcription initiation and termination on phage lambda DNA. We have defined a discrete site pE for initiation (promotor) and tR1 for termination (terminator) of transcription on the lambda DNA.